Issue of Equity

7 October 2011

Andes Energia plc

("Andes" or the "Company")

Issue of Equity

The Board of Andes announces certain directors' transactions in the ordinary shares of the Company ("Ordinary Shares").

Investment of bonuses in new Ordinary Shares

Certain directors and other parties have elected to invest bonus awards totalling US$500,000 in 1,352,813 new Ordinary Shares to be issued by the Company at a placing price of 24 pence per Ordinary Share.

Application has been made for the 1,352,813 new Ordinary Shares to be admitted to AIM. It is expected that admission of the new Ordinary Shares will become effective on 13 October 2011.

Directors have elected to invest as follows:

Following these transactions, the above Directors' beneficial interest in the Company are as follows

Neil Bleasdale, Chairman of Andes, commented, "The Board of Andes believes that this issue of equity reflects the commitment of our management team and their confidence and belief in the long term fundamentals of the Company and its operations."

Total Voting Rights

Following admission of the 1,352,813 Ordinary Shares, the total number of issued Ordinary Shares will be 146,208,477 Ordinary Shares. The Company does not hold any Ordinary Shares in treasury. This figure may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the Financial Service Authority's Disclosure and Transparency Rules.

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Note to Editors:

Andes is a Latin American energy group, with oil and gas, electricity distribution and hydro-electric power interests in Argentina. The Company's focus is on the Argentinean energy sector, which it believes offers premium assets at undervalued prices.